StubHub — Second Quarter 2026 Earnings Summary

Financial Performance

• Gross Merchandise Sales (GMS) reached a record $3.1 billion, a 34% increase year-over-year from $2.3 billion.
• Revenue totaled $573.1 million, a 33% increase year-over-year from $430.3 million, representing approximately 19% of GMS.
• Net income was $14.6 million (3% net income margin), compared to a net loss of $53.8 million in the prior-year period.
• Adjusted EBITDA increased 94% to $105.7 million, with the margin expanding nearly 600 basis points year-over-year to 18% (from 13%).
• Net cash provided by operating activities was $321.9 million, compared to $19.3 million in the prior-year period.
• Free cash flow was $309.7 million, compared to $9.7 million in the prior-year period.
• Cash and cash equivalents stood at $1.7 billion, with $1.2 billion in payments due to sellers.
• Net leverage improved to 3.0x trailing 12-month adjusted EBITDA as of June 30, 2026, a 1.5x reduction from 4.5x as of December 31, 2025.
• Year-to-date debt reduction totaled $200.0 million, including $100.0 million payments in May and July, contributing to a total debt reduction of $1.1 billion over the last 12 months.

Guidance and Future Outlook

• Full-year 2026 GMS outlook increased to a range of $10.1 billion to $10.3 billion.
• Full-year 2026 Adjusted EBITDA outlook reiterated at $400 million to $420 million.

Business Segments and Product Lines

• StubHub operates as a leading global ticketing marketplace for live events, servicing customers in over 200 countries and territories via StubHub and its international brand viagogo.
• The platform supports over 30 languages and accepts payments in over 45 currencies across sports, music, comedy, dance, festivals, and theater.
• Management highlighted strong demand for live events driven by a record-setting World Cup.

Market and Competitive Landscape

• The company maintains leadership in the resale market and focuses on delivering live event experiences to fans at scale.
• Strategic vision includes enhancing the fan experience, democratizing access to live events, and expanding the addressable market.

Risks and Challenges

• Forward-looking statements are subject to risks including fluctuations in demand for tickets and live events, ability to maintain relationships with buyers, sellers, and content rights holders, and competition in the ticketing industry.
• Risks also include reliance on internet search engines, ability to expand into adjacent markets, seasonal trends, foreign currency exchange rate fluctuations, inflation, regulatory compliance, cybersecurity, and litigation.

Management Commentary and Tone

• Eric Baker, Founder, Chairman, and CEO, stated the second quarter demonstrated strong demand for live events and reflected StubHub's leadership and ability to scale.
• Management expressed focus on a long-term growth vision centered on fan experience, access democratization, and market expansion.

Other Key Points

• Conference call and webcast held on August 12, 2026, at 5:00 PM Eastern Time.
• Financial statements include reconciliations for non-GAAP measures such as Adjusted EBITDA, Free Cash Flow, Net Leverage, and Adjusted Gross Margin.
• Adjusted EBITDA guidance reconciliation to GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of future expenses, particularly stock-based compensation.